Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production supportprooessfollow Overhead Cost Components Changeove 595,950 ber of batches 870 Machining 401,760 Machine hours 8,640 181,000 Number of setups 100 $1,178,710 245.280 Welding hours Finishing Welding 4,800 283,500 Number of inspections 810 Rework 39,200 Rework orders 160 567980 151,360 Purchase orders Support Purchasing 473 Providing space 30,700 Number of units 6,900 Providing utilities 101.090 Number of units 6,900 283.150 Additional production information concerning its two productlines follows. Model 145 Model 212 Units produced 2,300 4.600 Welding hours 3.000 Number of inspectio 470 Machine hours 3,350 5.290 Rework orders 110 Purchase orders 315 Required 1. Using ABC, compute the overhead cost per unit for each product line. (Round your intermediate calculations and round activity rate and costperunit answers to 2 decimal places.) Mode 145 Model 212 Aernetydmer Expected Activity Expected Costs Activity Rate Components 595,950 870 N Machining 401760 8640 Machine hours Setups 181.000 100 setups Finishing Welding 245.280 4.800 Welding hours Inspecting 283 500 810 Inspections Rework 30.200 160 Reworkorders Support Purchasing S 151 360 473 Purchase orders 131700 6900 Units Providing space and utilites Total overhead cost 0 Total units produced overhead oost per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started